Mithril Drills Wide, High-Grade Intercepts Confirming 550m Strike With First Systematic Drilling In The Copalquin-Zaragoza Structure At Target 4
Mithril identified four new targets at Copalquin that are wider and higher-grade than the project's anchor discovery.
Mithril Silver and Gold Limited (MSG) has released results from the first systematic drilling across the Copalquin-Zaragoza structure at Target 4, focusing on the historic Copalquin Mine area.
Reported headline intercepts include:
- CO26-001: 11.70 m @ 456 g/t AgEq from 22.0 m, including 3.40 m @ 1,239 g/t AgEq and 0.60 m @ 3,877 g/t AgEq
- CO26-002: 13.95 m @ 387 g/t AgEq from 88.85 m, including 1.00 m @ 1,747 g/t AgEq
- CO26-003: 6.50 m @ 320 g/t AgEq from 93.4 m, including 0.50 m @ 1,890 g/t AgEq
- Target 1 follow-up: LS26-008 returned 13.45 m @ 125 g/t AgEq, including 0.50 m @ 2,109 g/t AgEq
- Target 5 follow-up: MA26-002 returned 0.50 m @ 1,702 g/t AgEq
The company states that drilling across the combined Copalquin-Zaragoza corridor confirms mineralisation over 550 m of strike and 200 m vertically, with the structure open 400 m northwest and 600 m southeast. The zone is interpreted as potentially part of a 1.5 km mineralised corridor.
The release also reiterates the previously announced Target 1 resource upgrade, which comprises 3,391 kt Indicated at 4.26 g/t AuEq and 1,436 kt Inferred at 3.28 g/t AuEq. This resource estimate was first published in late June 2026.
Mithril Silver and Gold Limited (MSG) released drill results from a discovery and step-out program at its Target 4 area, a previously poorly understood historic mine zone. The new drilling systematically confirmed mineralization across approximately 500 meters of strike, with all three holes intersecting the target structure. The grade-width product in these intersections was materially better than the prior 2024 Target 4 result. The mineralized structure remains open toward Target 1 and the San Manuel workings.
At a market capitalization of A$48 million, the company already holds a 464 koz AuEq resource at Target 1. The identification of a new near-surface mineralized corridor of this length is considered market-relevant. However, the resource case is not yet fully established. Only three holes define the new zone, true width has not been reported, and metallurgical recovery specific to Target 4 has not been established. The market will require additional step-out and continuity drilling before the significance of this zone becomes more durable.
The release also noted that some holes in other parts of the district failed to return reportable grades, a common occurrence in multi-target exploration that highlights varying potential across targets. Consequently, the prior Target 1 anchor is not embedded in the share price, and this result represents a positive surprise against a depressed base rather than clearing elevated market expectations.
Mithril Silver and Gold Limited is a junior explorer with no operating revenue. The company holds assets in the Copalquin district in Durango, Mexico, covering approximately 70 square kilometers.
The company has identified a resource at Target 1, which is constrained and diluted. The Indicated resource consists of 3,391 kilotonnes at 4.26 grams per tonne gold equivalent, containing 343,000 ounces of gold and 8,479,000 ounces of silver. The Inferred resource comprises 1,436 kilotonnes at 3.28 grams per tonne gold equivalent, containing 103,000 ounces of gold and 3,398,000 ounces of silver.
Thirteen target areas have been identified, with multiple targets now drilled. The company also added the nearby La Dura property by option, which features historic workings and a 1.5-kilometer anomalous corridor.
According to the latest financials provided for March 31, 2026, Mithril Silver and Gold Limited held cash of A$10.84 million and had no debt. Total assets stood at A$63.36 million, with total liabilities of A$2.38 million, resulting in working capital of approximately A$10.18 million. The company reported a nine-month net loss of A$4.52 million, with exploration expenditure remaining the dominant use of cash.
The company has an option to purchase 100 percent of the Copalquin concessions for US$10 million by August 2028.